State-owned Power Finance Corporation (PFC) has announced a public issue of non-convertible debentures (NCDs) to raise up to ₹5,000 crore as part of its funding and debt programme for the current fiscal year.
The fundraising drive will start on January 16, 2026 and is expected to remain open until January 30, 2026, with provisions for early closure or extension in line with securities regulations. The issue has a base size of ₹500 crore and includes a green shoe option that allows oversubscription up to ₹4,500 crore, taking the total to the targeted ₹5,000 crore. The NCDs are proposed to be listed on the National Stock Exchange of India once issued.
Investors will have a choice of tenors, including 5-year, 10-year and 15-year maturities, as well as a zero-coupon option. The debentures carry high credit ratings from major agencies, reflecting strong credit quality and stable outlook. Annual coupon rates range approximately between 6.85 % and 7.30 %, depending on the series and investor category.
The minimum application amount for most series is ₹10,000, with a higher face value set for the zero-coupon option. The secured, rated, listed, redeemable NCDs are expected to attract a broad base of investors, including retail participants, given their competitive yields and long-term income potential.
PFC plans to use at least 75 % of the net proceeds for onward lending, financing or refinancing of existing borrowings, and debt servicing. The remaining portion may be utilised for general corporate purposes. Proceeds from the zero-coupon series will be directed exclusively toward onward lending activities.
This public NCD issue follows earlier decisions to withdraw private bond placements due to market volatility. By tapping the wider public market, PFC aims to secure cost-efficient capital while expanding its investor base and strengthening liquidity for ongoing financing operations in the power and infrastructure sectors.
